03/10/2016 - News

Total Nigeria achieves another local industry capacity development milestone as SCNL flags off Egina UFR load-out

The mood was that of pride and a great sense of achievement as senior government officials, industry leaders and community representatives assembled at the Saipem Contracting Nigeria Limited (SCNL) Yard in Rumuolumeni, Port Harcourt, Rivers State, on Thursday, September 29, 2016, for the load-out ceremony of Egina Umblicals, Flowlines, Risers, and Offloading systems (UFR) components.

The ceremony took place in a marquee erected by the quayside with some of the completed subsea structures towering in the background, providing a fitting backdrop to this story of accomplishment, local capacity and successful collaboration between contractor, project owners and other stakeholders.

In his welcome remarks, the Managing Director, SCNL, Mr. Guido D’Aloisio, described Egina as “truly Nigerian project because of its outstanding Nigerian content achievement in terms of capacity development and employment generation.”

He said SCNL had spent about 1.5 million man-hours on the Egina UFR project without Lost Time Injury (LTI) and fabricated about 40,000 tons of complex subsea structures in-country, which, according to him, had generated employment opportunities for “thousands of Nigerians.” 

He attributed the success to the “excellent collaboration and a long relationship that exists between Saipem and Total” as well as the Nigerian authorities. D’Aloisio also said another major success factor was the availability of skilled Nigerian workers for whom the project provided an opportunity to further develop their skills.

In his remarks, the Managing Director and Chief Executive, Total Upstream Companies in Nigeria, Mr. Nicolas Terraz, said that the UFR load-out ceremony was another very clear indication that Total is on course to deliver Egina “to Nigeria and to our partners in line with our projections.”

He pointed out that Egina had the highest levels of Nigerian content of any Nigerian Oil & Gas project to date with about 94% of its Basic Engineering performed in Nigeria by Nigerian companies as well as its Detailed Engineering, which represents about 85% of engineering man-hours spent in Nigeria.

He expressed delight that all the achievements on the Egina Project in Nigeria had come with zero fatality and zero harm so far and charged the teams to sustain the effort, noting that “it’s of critical importance to us and our partners that the project is delivered safely, on time and on budget.”

While drawing attention to the challenges posed by the current drop in oil price, Terraz urged contractors to explore more innovative and cost effective ways of operating, but, at the same time, ensuring that safety and quality are not compromised.

“We also need to keep in mind that the global Oil and Gas industry is presently facing challenging times,” he explained. “Low oil prices have adversely affected bottom lines and, in turn, exploration and project activities. It is no longer business as usual. Total, with the support of our Partners, will continue to pursue all possible avenues to optimize project costs. We, therefore, call for the cooperation of our main contractors such as SAIPEM, to work together with us to keep this project viable and in tune with the current realities.”

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Kacalla Baru, who delivered a keynote speech at the ceremony, commended Total and Saipem for the impressive Nigerian content milestones achieved on the Egina Project and pledged the support and cooperation of the Corporation at all times. 

He also called on the Nigerian Content Development & Monitoring Board (NCDMB) to continue to support the NNPC and its partners and to ease approval processes to ensure even more record-setting achievements in the industry.

Nigerian National Assembly members; National Petroleum Investment Management Services (NAPIMS) and NCDMB officials; Italian Ambassador to Nigeria and host community leaders were present at the ceremony, which was rounded off with a tour of the SCNL Fabrication Workshop. 

Saipem is currently executing Egina UFR Project, an ultra-deep water subsea development that entails the Engineering, Procurement, Construction and Installation of Flowlines, Risers, and Offloading systems for Egina field with peculiar complexities.